- An early BNB holder sold some of his coins for a $54 million profit.
- BNB moved sideways and could continue consolidating between $210 to $215.
On 8 October, one of the early adopters and holders of Binance Coin [BNB] sent $1.48 million worth of the coin to the Binance exchange. For holding onto the coin that long, Lookonchain revealed that the holder made a profit of $54 million on the sale.
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An early $BNB holder deposited 7,005 $BNB ($1.48M) to #Binance again today.
The early holder has a profit of more than $54M on $BNB and currently has 5,447 $BNB ($1.15M) left.https://t.co/JzcPPKtog1 pic.twitter.com/k2B6IKF2RO
— Lookonchain (@lookonchain) October 8, 2023
The first time the holder sold was in 2018 after depositing 500,543 BNB, valued at $56 million, into Binance. That happened at an average price of $112. Interestingly, the recent sell-off did not end up in a massive plunge for BNB.
No strong movement
According to CoinMarketCap, BNB exchanged hands at $211.75 at press time. This was because it lost only 0.89% of its value in the last 24 hours.
Irrespective of the strength shown by the coin, traders may need to be careful about the position to open. Technical indicators also seemed to support this notion.
From the BNB/USD 4-hour chart, the Bollinger Bands (BB) showed that BNB’s volatility had somewhat stabilized. In a case like this, it could be rare to find notable price fluctuations. Furthermore, neither of the upper or lower bands touched the BNB price at $211.
So, the coin was not overbought nor oversold. Therefore, traders may need the silence in the market to change if they are to profit from a position. Another indicator that revealed a similar sentiment was the Moving Average Convergence Divergence (MACD).
As of this writing, the MACD was 0.1, suggesting that BNB’s momentum was bullish. However, the 12-day (blue) and 26-day (orange) EMAs were below the zero histogram point and very close to each other.
Source: TradingView
This indicates how BNB does not have a clear direction, as buyers’ and sellers’ presence in the market was almost equal. Hence, it is likely to find BNB consolidating around $210 to $215 in the short term.
BNB has low liquidity
On the derivatives end of the market, BNB’s Open Interest was $320.48 million— almost the same value that was in the market on 7 October. Open Interest keeps track of every outstanding open contract.
How much are 1,10,100 BNBs worth today?
A high Open Interest means an increase in liquidity, while a low Open Interest suggests a dearth of liquidity towards contracts related to an asset. For BNB, the Open Interest suggests that traders are mostly on the sidelines and probably wait for a notable movement in the price action before taking a stance.
Source: Coinglass
In the coming days, it is likely that traders will stay true to this position, as it seems that the market may continue a sideways movement.
